GlobeNewswire Inc | Feb 23, 2021 07:00AM EST

February 23, 2021

HOUSTON, Feb. 23, 2021 (GLOBE NEWSWIRE) -- Franks International N.V. (NYSE: FI) (the Company or Franks) today reported financial and operational results for the three and twelve months ended December 31, 2020.

Fourth Quarter 2020 Financial Highlights

-- Delivered fourth quarter revenue of $96.3 million, a 14.1% increase over the prior period, primarily driven by 22.9% sequential revenue improvement in our Tubular Running Services segment. -- Fourth quarter net loss of $8.2 million, an improvement of more than 70% over the prior period. -- Generated fourth quarter Adjusted EBITDA of $4.6 million, moving the company back into positive territory compared to the prior two quarters, with profitability improving across all operating segments due to higher customer activity levels and continued realization of cost savings. -- Fourth quarter cash flows from operating activities totaled $14.3 million generating free cash flow of $11.6 million driven by a relentless focus on working capital, cost reductions and reducing capital expenditures. -- Completed Profitability Improvement Plan actions for the year which led to over $55 million of support cost savings during 2020.

We delivered solid sequential revenue growth in the fourth quarter primarily due to significant improvement in our Tubular Running Services segment and a strengthening backdrop in our U.S. land business. In addition, our focus on cost reduction efforts this year helped drive further profitability improvementsacross all of our operating segments. Our Tubular Running Services segment was aided by the redeployment of several rigs sidelined by the COVID-19 pandemic, and the expected commencement of previously scheduled work toward the end of the fourth quarter, as well as some successful upselling of our technologically advanced products. Focusing specifically on our cost structure, we exceeded our 25% year-over-year reduction target in both operational and support costs, which has enabled us to permanently realign the support cost structure of our organization. During the fourth quarter, we also generated significant positive free cash flow and increased our already formidable liquidity position. After two very challenging quarters due to the COVID-19 pandemic, our fourth quarter represented a turning point, and we continue to demonstrate the strength and resiliency of our businesses, along with our ability to safely deliver enhanced service quality to our customers, said Michael Kearney, the Companys Chairman, President and Chief Executive Officer.

Full Year 2020 Financial Highlights

-- Revenue of $390.4 million decreased 32.7% compared to the prior year period of $579.9 million due to unprecedented declines in customer spending and associated activity levels caused by the COVID-19 pandemic. -- Full year net loss of $156.2 million compared to $235.3 million in the prior year period. -- Adjusted EBITDA totaled $9.0 million, compared to $57.5 million in the prior year period, with associated margins of 2.3%. -- Year over year cost reductions totaled over $143 million including the effect of Profitability Improvement Plan actions. -- Generated $11.2 million in free cash flow during the year with total liquidity position of $233.8 million at year end. -- Delivered the best safety performance with the lowest TRIR in Company history despite the challenges created by the COVID-19 pandemic.

Mr. Kearney continued, Despite the sudden downturn in our industry, we delivered on our stated goals for 2020 of appropriately right sizing our ongoing operations, exceeding our profit improvement cost reduction targets, deploying innovative technologies to the marketplace, and enhancing delivery of service quality and safety to all our customers.

From an operations perspective, we consolidated into key operating basins and properly scaled our operations to more efficiently service our customers. As a result, we are well positioned to quickly pivot as market conditions improve, as we experienced during the fourth quarter. The combination of our operational efficiency improvements and cost reduction actions enabled our organization to generate substantially more free cash flow in 2020, on a materially smaller revenue base, when compared to prior year periods. The tough choices we made last year regarding permanent cost reductions will enable our organization to capture enhanced profitability faster as the market continues to improve.

Throughout 2020, we commercialized and deployed various technologies designed to improve efficiency, reduce costs, and enhance operational service quality and safety. Several of our recently commercialized and successfully deployed technologies, such as our CENTRI-FI digital control system, are focused on improving safety by reducing headcount at well center as well as fewer personnel required to perform a job. During the fourth quarter, CENTRI-FI was deployed to a significant international operator resulting in efficiency gains during casing operations, garnering high praise for personnel reductions, increased safety and overall job cost savings. Additionally, we recently deployed our digital Remote CAM Viewer on multiple jobs in the U.S. land market. This technology allows for the combined operation of the tong and the monitoring of the torque-turn graphs by a single operator, which resulted in increased accuracy and a reduction of personnel on location. Our commitment to developing innovative technologies that focus on improving safety further reflect the environmental, social and governance centric values of our organization.

In past quarters, I have acknowledged the dedication and resiliency of our workforce and I remain extremely proud of how our organization has stayed focused on managing things within its control and continuing to deliver excellent service quality to all our customers. The challenges we have overcome place our organization in a position of strength as we enter 2021. We saw positive operational momentum build in the fourth quarter of 2020 and we expect to see further gains as we move through the year. For 2021, we will remain focused on growing our Tubulars segment in select markets and continuing the expansion of our Cementing Equipment segment internationally. Even though the market is improving, and customer demand is increasing, we will maintain our disciplined approach to our capital spending and stay focused on properly managing our overall cost structure. We have built a solid operational platform that will enable our organization to continue to improve our service offerings and to bring additional technologies to market, that will not only reduce costs for our customers, but for our organization as well. In 2021 our focus remains on generating long-term value for our stakeholders, generating free cash flow, and bringing differentiated technologies to the market, concluded Mr. Kearney.

Segment Results

Tubular Running Services

Tubular Running Services revenue totaled $65.0 million in the fourth quarter of 2020, compared to $52.9 million in the third quarter of 2020, and $93.4 million in the fourth quarter of 2019. The sequential improvement is attributable to the redeployment of rigs previously sidelined by the COVID-19 pandemic and a steady recovery in our U.S. land business as operators put rigs back to work throughout the fourth quarter.

Segment adjusted EBITDA in the fourth quarter of 2020 totaled $3.8 million, or 6% of revenue, compared to $1.0 million, or 2% of revenue, in the third quarter of 2020, and $18.6 million, or 20% of revenue, in the fourth quarter of 2019. The sequential increase in adjusted EBITDA was primarily due to an increase in customer activity levels concentrated in core operating areas such as the Gulf of Mexico.

Tubulars

Tubulars revenue in the fourth quarter of 2020 totaled $15.9 million, compared to $16.5 million in the third quarter of 2020, and $21.2 million in the fourth quarter of 2019. The sequential decrease was predominately due to strong product sales during the third quarter, which was partially offset by increased tubular product sales and drilling tools activity internationally during the fourth quarter.

Segment adjusted EBITDA in the fourth quarter of 2020 totaled $3.9 million, or 25% of revenue, compared to $1.8 million, or 11% of revenue, in the third quarter of 2020, and $3.1 million, or 14.5% of revenue, in the fourth quarter of 2019.

Cementing Equipment

Cementing Equipment revenue totaled $15.5 million in the fourth quarter of 2020, compared to $15.0 million in the third quarter of 2020, and $24.9 million in the fourth quarter of 2019. The year over year revenue decrease was primarily related to reduced customer activity levels in both the U.S. onshore and offshore markets, which was partially offset by a 35% year over year revenue increase internationally. During the fourth quarter, sequential revenue increased slightly principally due to improvements in the U.S. onshore market.

Segment adjusted EBITDA in the fourth quarter of 2020 totaled $4.0 million, or 26% of revenue, compared to $3.4 million, or 23% of revenue, in the third quarter of 2020, and $4.2 million, or 17% of revenue, in the fourth quarter of 2019. The year over year decrease was due to reduced customer activity levels in both the U.S. onshore and offshore markets. During the fourth quarter, the sequential increase in adjusted EBITDA was predominately driven by increased customer activity levels in U.S. offshore and international markets.

Profit Improvement Actions Update

The Company realized reductions in its overall cost structure of 27% year over year, which included approximately $88 million of operational cost savings and $55 million of indirect and SG&A support cost savings.

In the fall of 2019, the Company announced a Profitability Improvement Program (PIP) with a goal of saving $30 million in 2020 and an additional $15 million in 2021 related to indirect and SG&A savings. We are proud to announce that the cost reductions we achieved exceeded $55 million in 2020. These savings surpassed our original targets and were achieved on an accelerated timeline. Although cost reduction initiatives have largely been completed, the company will benefit from the full year effect of those completed initiatives during 2021 as well as further efficiencies that will be gained from the ERP implementation that is currently in process.

Other Financial Information

Capital expenditures related to property, plant and equipment and intangibles totaled $2.7 million in the fourth quarter of 2020 compared to $5.5 million in the prior quarter. In 2020, capital expenditures totaled $28.5 million, which was slightly below our previous annual capital expenditure guidance of approximately $30 million.

As of December 31, 2020, the Companys consolidated cash and cash equivalents totaled $209.6 million, compared to $205.9 million as of the prior quarter end, and $195.4 million at year end 2019. The Company had no outstanding debt as of year-end. Company liquidity as of December 31, 2020 totaled $233.8 million, including cash and cash equivalents, and $24.2 million of availability under the Companys credit facility. For the fourth quarter of 2020, the Company generated operating cash flow of $14.3 million resulting in free cash flow of $11.6 million. For the year ended December 31, 2020, the Company generated $39.7 million of operating cash flow resulting in free cash flow generation of $11.2 million. The Company will remain disciplined with its capital deployment strategy in 2021 focusing on generating free cash flow and maintaining a strong liquidity position.

Income taxes for the quarter represented a benefit of $3.9 million compared to an expense of $6.4 million in the third quarter. The change in income taxes was primarily driven by the geographical mix of income and year-end adjustments related to non-cash deferred items.

The financial measures provided that are not presented in accordance with U.S. generally accepted accounting principles (GAAP) are defined and reconciled to their most directly comparable GAAP measures. Please see Use of Non-GAAP Financial Measures and the reconciliations to the nearest comparable GAAP measures.

Conference Call

The Company will host a conference call to discuss fourth quarter 2020 results on Tuesday, February 23, 2021 at 10:00 a.m. Central Time (11:00 a.m. Eastern Time). Participants may join the conference call by dialing (800) 708-4540 or (847) 619-6397. The conference call ID number is 50078453. To listen via live webcast, please visit the Investor Relations section of the Company's website, www.franksinternational.com. A presentation will also be posted on the Companys website prior to the conference call.

An audio replay of the conference call will be available in the Investor Relations section of the Companys website approximately two hours after the conclusion of the call and remain available for a period of approximately 90 days.

About Franks International

Franks International N.V. is a global oil services company that provides a broad and comprehensive range of highly engineered tubular running services, tubular fabrication, and specialty well construction and well intervention solutions with a focus on complex and technically demanding wells. Founded in 1938, Franks has approximately 2,400 employees and provides services to leading exploration and production companies in both onshore and offshore environments in approximately 40 countries on six continents. The Companys common stock is traded on the NYSE under the symbol FI. Additional information is available on the Companys website, www.franksinternational.com.

Investor Contact:

Melissa Cougleinvestor.info@franksintl.com281-966-7300

FRANK?S INTERNATIONAL N.V.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(In thousands, except per share data)(Unaudited) Three Months Ended Year Ended December 31, September 30, December 31, December 31, 2020 2020 2019 2020 2019Revenue: Services $ 82,373 $ 66,418 $ 111,469 $ 328,457 $ 473,538 Products 13,975 17,999 27,972 61,901 106,382 Total revenue 96,348 84,417 139,441 390,358 579,920 Operating expenses:Cost ofrevenue,exclusive of depreciationandamortizationServices 67,675 56,574 82,556 264,680 338,325 Products 11,392 13,733 20,816 47,399 78,666 General andadministrative 14,623 18,665 24,086 82,257 120,444 expensesDepreciationand 17,249 15,950 22,163 70,169 92,800 amortizationGoodwill ? ? 111,108 57,146 111,108 impairmentSeverance andother charges, 3,587 3,549 43,938 33,023 50,430 net(Gain) loss ondisposal of (526 ) (308 ) 53 (1,424 ) 1,037 assetsOperating loss (17,652 ) (23,746 ) (165,279 ) (162,892 ) (212,890 ) Other income (expense):Tax receivableagreement(?TRA?) ? ? ? ? 220 relatedadjustmentsOther income (201 ) 109 (1,715 ) 2,090 1,103 (expense), netInterestincome 94 (93 ) 508 712 2,265 (expense), netForeigncurrency gain 5,654 2,334 1,817 (211 ) (2,233 ) (loss)Total other 5,547 2,350 610 2,591 1,355 income Loss before (12,105 ) (21,396 ) (164,669 ) (160,301 ) (211,535 ) income taxesIncome taxexpense (3,899 ) 6,395 3,424 (4,081 ) 23,794 (benefit)Net loss $ (8,206 ) $ (27,791 ) $ (168,093 ) $ (156,220 ) $ (235,329 ) Loss per common share:Basic and $ (0.04 ) $ (0.12 ) $ (0.75 ) $ (0.69 ) $ (1.05 ) diluted Weightedaverage common sharesoutstanding:Basic and 226,313 226,143 225,504 226,042 225,159 diluted

FRANK?S INTERNATIONAL N.V.SELECTED OPERATING SEGMENT DATA(In thousands)(Unaudited) Three Months Ended Year Ended December 31, September December 31, December 31, 30, 2020 2020 2019 2020 2019Revenue TubularRunning $ 64,961 $ 52,926 $ 93,356 $ 269,711 $ 400,327 ServicesTubulars 15,902 16,483 21,177 53,668 74,687 Cementing 15,485 15,008 24,908 66,979 104,906 EquipmentTotal $ 96,348 $ 84,417 $ 139,441 $ 390,358 $ 579,920 SegmentAdjusted EBITDA:TubularRunning $ 3,835 $ 982 $ 18,582 $ 22,171 $ 85,601 ServicesTubulars 3,882 1,806 3,073 7,765 11,575 Cementing 3,974 3,376 4,235 10,780 14,089 EquipmentCorporate (7,075 ) (7,151 ) (11,211 ) (31,720 ) (53,744 ) Total $ 4,616 $ (987 ) $ 14,679 $ 8,996 $ 57,521

FRANK?S INTERNATIONAL N.V.CONDENSED CONSOLIDATED BALANCE SHEETS(In thousands)(Unaudited) December 31, December 31, 2020 2019Assets Current assets: Cash and cash equivalents $ 209,575 $ 195,383 Restricted cash 1,672 1,357 Short-term investments 2,252 ? Accounts receivables, net 110,607 166,694 Inventories, net 81,718 78,829 Assets held for sale 2,939 13,795 Other current assets 7,744 10,360 Total current assets 416,507 466,418 Property, plant and equipment, net 272,707 328,432 Goodwill 42,785 99,932 Intangible assets, net 7,897 16,971 Deferred tax assets, net 18,030 16,590 Operating lease right-of-use assets 28,116 32,585 Other assets 30,859 33,237 Total assets $ 816,901 $ 994,165 Liabilities and Equity Current liabilities: Accounts payable and accrued liabilities $ 99,986 $ 120,321 Current portion of operating lease liabilities 7,832 7,925 Deferred revenue 586 657 Other current liabilities 1,674 ? Total current liabilities 110,078 128,903 Deferred tax liabilities 1,548 2,923 Non-current operating lease liabilities 21,208 24,969 Other non-current liabilities 22,818 27,076 Total liabilities 155,652 183,871 Stockholders? equity: Common stock 2,866 2,846 Additional paid-in capital 1,087,733 1,075,809 Accumulated deficit (377,346 ) (220,805 ) Accumulated other comprehensive loss (31,966 ) (30,298 ) Treasury stock (20,038 ) (17,258 ) Total stockholders? equity 661,249 810,294 Total liabilities and equity $ 816,901 $ 994,165

FRANK?S INTERNATIONAL N.V.CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(In thousands) Year Ended December 31, 2020 2019Cash flows from operating activities Net loss $ (156,220 ) $ (235,329 ) Adjustments to reconcile net loss to cash from operating activitiesDepreciation and amortization 70,169 92,800 Equity-based compensation expense 11,010 11,280 Goodwill impairment 57,146 111,108 Loss on asset impairments and retirements 21,225 40,686 Amortization of deferred financing costs 388 371 Deferred tax provision (benefit) (2,823 ) 727 Provision for bad debts 938 1,281 (Gain) loss on disposal of assets (1,424 ) 1,037 Changes in fair value of investments (1,106 ) (2,747 ) Unrealized (gain) loss on derivative instruments ? 222 Other (64 ) (1,522 ) Changes in operating assets and liabilities Accounts receivable 54,707 22,152 Inventories (1,573 ) (10,694 ) Other current assets 4,437 856 Other assets 848 (1,285 ) Accounts payable and accrued liabilities (14,589 ) (3,937 ) Deferred revenue (74 ) 545 Other non-current liabilities (3,344 ) (503 ) Net cash provided by operating activities 39,651 27,048 Cash flows from investing activities Purchases of property, plant and equipment and (28,473 ) (36,942 ) intangiblesProceeds from sale of assets 8,319 791 Purchase of investments (2,252 ) (20,122 ) Proceeds from sale of investments 2,832 46,739 Other (460 ) (512 ) Net cash used in investing activities (20,034 ) (10,046 ) Cash flows from financing activities Repayments of borrowings (236 ) (5,627 ) Treasury shares withheld for taxes (1,282 ) (1,886 ) Treasury share repurchase (1,498 ) ? Proceeds from the issuance of ESPP shares 934 1,752 Deferred financing costs ? (184 ) Net cash used in financing activities (2,082 ) (5,945 ) Effect of exchange rate changes on cash (3,028 ) (529 ) Net increase in cash, cash equivalents and 14,507 10,528 restricted cashCash, cash equivalents and restricted cash at 196,740 186,212 beginning of periodCash, cash equivalents and restricted cash at end $ 211,247 $ 196,740 of period

Forward Looking Statements

This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include statements, estimates and projections regarding the Companys future business strategy and prospects for growth, cash flows and liquidity, financial strategy, budget, projections and operating results, the amount, nature and timing of capital expenditures, the availability and terms of capital, the level of activity in the oil and gas industry, volatility of oil and gas prices, unique risks associated with offshore operations, political, economic and regulatory uncertainties in international operations, the ability to develop new technologies and products, the ability to protect intellectual property rights, the ability to employ and retain skilled and qualified workers, the level of competition in the Companys industry, global or national health concerns, including health epidemics, including COVID-19, the continuation of a swift and material decline in global crude oil demand and crude oil prices for an uncertain period of time, the length of time it will take for the United States and the rest of the world to slow the spread of the COVID-19 virus to the point where applicable authorities are comfortable easing current restrictions on various commercial and economic activities, future actions of foreign oil producers such as Saudi Arabia and Russia and the risk that they take actions that will prolong or exacerbate the current over-supply of crude oil, the timing, pace and extent of an economic recovery in the United States and elsewhere, the impact of current and future laws, rulings, governmental regulations, accounting standards and statements, and related interpretations, and other guidance. These statements are based on certain assumptions made by the Company based on managements experience, expectations and perception of historical trends, current conditions, anticipated future developments and other factors believed to be appropriate. Forward-looking statements are not guarantees of performance.

Although the Company believes the expectations reflected in its forward-looking statements are reasonable and are based on reasonable assumptions, no assurance can be given that these assumptions are accurate or that any of these expectations will be achieved (in full or at all) or will prove to have been correct. Moreover, such statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company, which may cause actual results to differ materially from those implied or expressed by the forward-looking statements. These include the factors discussed or referenced in the Risk Factors section of the Companys Annual Report on Form 10-K for the year ended December 31, 2020 that will be filed with the SEC. Any forward-looking statement speaks only as of the date on which such statement is made, and the Company undertakes no obligation to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by applicable law, and we caution you not to rely on them unduly.

Use of Non-GAAP Financial Measures

This press release and the accompanying schedules include the non-GAAP financial measures of adjusted net loss, adjusted net loss per diluted share, free cash flow, adjusted EBITDA and adjusted EBITDA margin, which may be used periodically by management when discussing the Companys financial results with investors and analysts. The accompanying schedules of this press release provide a reconciliation of these non-GAAP financial measures to their most directly comparable financial measure calculated and presented in accordance with GAAP. Adjusted net loss, adjusted net loss per diluted share, free cash flow, adjusted EBITDA and adjusted EBITDA margin are presented because management believes these metrics provide additional information relative to the performance of the Companys business. These metrics are commonly employed by financial analysts and investors to evaluate the operating and financial performance of the Company from period to period and to compare it with the performance of other publicly traded companies within the industry. You should not consider adjusted net loss, adjusted net loss per diluted share, free cash flow, adjusted EBITDA and adjusted EBITDA margin in isolation or as a substitute for analysis of the Companys results as reported under GAAP. Because adjusted net loss, adjusted net loss per diluted share, free cash flow, adjusted EBITDA and adjusted EBITDA margin may be defined differently by other companies in the Companys industry, the Companys presentation of these non-GAAP financial measures may not be comparable to similarly titled measures of other companies, thereby diminishing their utility.

The Company defines adjusted net loss as net loss before goodwill impairment and severance and other charges, net, net of tax. The Company defines adjusted net loss per share as net loss before goodwill impairment and severance and other charges, net, net of tax, divided by diluted weighted average common shares. The Company defines free cash flow as net cash provided by (used in) operating activities less purchases of property, plant and equipment and intangibles. The Company defines adjusted EBITDA as net income (loss) before interest income, net, depreciation and amortization, income tax benefit or expense, asset impairments, gain or loss on disposal of assets, foreign currency gain or loss, equity-based compensation, the effects of the tax receivable agreement, unrealized and realized gains or losses and other non-cash adjustments and other charges or credits. The Company uses adjusted EBITDA to assess its financial performance because it allows the Company to compare its operating performance on a consistent basis across periods by removing the effects of its capital structure (such as varying levels of interest expense), asset base (such as depreciation and amortization), income tax, foreign currency exchange rates and other charges and credits. The Company defines adjusted EBITDA margin as adjusted EBITDA divided by total revenue.

Please see the accompanying financial tables for a reconciliation of these non-GAAP measures to their most directly comparable GAAP measures.

FRANK?S INTERNATIONAL N.V.NON-GAAP FINANCIAL MEASURES AND RECONCILIATION(In thousands)(Unaudited) ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN RECONCILIATION Three Months Ended Year Ended December 31, September 30, December 31, December 31, 2020 2020 2019 2020 2019 Revenue $ 96,348 $ 84,417 $ 139,441 $ 390,358 $ 579,920 Net loss $ (8,206 ) $ (27,791 ) $ (168,093 ) $ (156,220 ) $ (235,329 ) Goodwill ? ? 111,108 57,146 111,108 impairmentSeveranceand other 3,587 3,549 43,938 33,023 50,430 charges, netInterest(income) (94 ) 93 (508 ) (712 ) (2,265 ) expense, netDepreciationand 17,249 15,950 22,163 70,169 92,800 amortizationIncome taxexpense (3,899 ) 6,395 3,424 (4,081 ) 23,794 (benefit)(Gain) losson disposal (526 ) (308 ) 53 (1,424 ) 1,037 of assetsForeigncurrency (5,654 ) (2,334 ) (1,817 ) 211 2,233 (gain) lossTRA related ? ? ? ? (220 ) adjustmentsCharges and 2,159 3,459 4,411 10,884 13,933 credits^ (1)Adjusted $ 4,616 $ (987 ) $ 14,679 $ 8,996 $ 57,521 EBITDAAdjustedEBITDA 4.8 % (1.2 ) % 10.5 % 2.3 % 9.9 %margin

________________________ Comprised of Equity-based compensation expense (for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019: $2,576, $2,773 and $3,042, respectively, and for the year ended December 31, 2020 and 2019: $11,010 and $11,280, respectively), Unrealized and realized (gains) losses (for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019: $102, $113 and $1,845, respectively, and for the^ year ended December 31, 2020 and 2019: $(1,378) and $(228), respectively),(1) Investigation-related matters (for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019: $97, $573 and $481, respectively, and for the year ended December 31, 2020 and 2019: $1,868 and $3,838, respectively) and Other adjustments (for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019: $616, none and $957, respectively, and for the year ended December 31, 2020 and 2019: $616 and $957, respectively).

FRANK?S INTERNATIONAL N.V.NON-GAAP FINANCIAL MEASURES AND RECONCILIATION(In thousands)(Unaudited) SEGMENT ADJUSTED EBITDA RECONCILIATION Three Months Ended Year Ended December 31, September 30, December 31, December 31, 2020 2020 2019 2020 2019SegmentAdjusted EBITDA:TubularRunning $ 3,835 $ 982 $ 18,582 $ 22,171 $ 85,601 ServicesTubulars 3,882 1,806 3,073 7,765 11,575 Cementing 3,974 3,376 4,235 10,780 14,089 EquipmentCorporate (7,075 ) (7,151 ) (11,211 ) (31,720 ) (53,744 ) 4,616 (987 ) 14,679 8,996 57,521 Goodwill ? ? (111,108 ) (57,146 ) (111,108 ) impairmentSeveranceand other (3,587 ) (3,549 ) (43,938 ) (33,023 ) (50,430 ) charges, netInterestincome 94 (93 ) 508 712 2,265 (expense),netDepreciationand (17,249 ) (15,950 ) (22,163 ) (70,169 ) (92,800 ) amortizationIncome tax(expense) 3,899 (6,395 ) (3,424 ) 4,081 (23,794 ) benefitGain (loss)on disposal 526 308 (53 ) 1,424 (1,037 ) of assetsForeigncurrency 5,654 2,334 1,817 (211 ) (2,233 ) gain (loss)TRA related ? ? ? ? 220 adjustmentsCharges and (2,159 ) (3,459 ) (4,411 ) (10,884 ) (13,933 ) credits ^(1)Net loss $ (8,206 ) $ (27,791 ) $ (168,093 ) $ (156,220 ) $ (235,329 )

________________________ Comprised of Equity-based compensation expense (for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019: $2,576, $2,773 and $3,042, respectively, and for the year ended December 31, 2020 and 2019: $11,010 and $11,280, respectively), Unrealized and realized gains (losses) (for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019: $(102), $(113) and $(1,845), respectively, and for(1) the year ended December 31, 2020 and 2019: $1,378 and $228, respectively), Investigation-related matters (for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019: $97, $573 and $481, respectively, and for the year ended December 31, 2020 and 2019: $1,868 and $3,838, respectively) and Other adjustments (for the three months ended December 31, 2020, September 30, 2020 and December 31, 2019: $616, none and $957, respectively, and for the year ended December 31, 2020 and 2019: $616 and $957, respectively).

FRANK?S INTERNATIONAL N.V.NON-GAAP FINANCIAL MEASURES AND RECONCILIATION(In thousands)(Unaudited) FREE CASH FLOW RECONCILIATION Three Months Ended Year Ended December September December December 31, 31, 30, 31, 2020 2020 2019 2020 2019 Net cashprovided by $ 14,336 $ 21,169 $ 18,563 $ 39,651 $ 27,048 operatingactivitiesLess:purchases ofproperty, 2,751 5,463 9,963 28,473 36,942 plant andequipment andintangiblesFree cash flow $ 11,585 $ 15,706 $ 8,600 $ 11,178 $ (9,894 )

FRANK?S INTERNATIONAL N.V.NON-GAAP FINANCIAL MEASURES AND RECONCILIATION(In thousands, except per share amounts)(Unaudited) RECONCILIATION OF ADJUSTED NET LOSS AND ADJUSTED NET LOSS PER DILUTED SHARE Three Months Ended Year Ended December 31, September 30, December 31, December 31, 2020 2020 2019 2020 2019 Net loss $ (8,206 ) $ (27,791 ) $ (168,093 ) $ (156,220 ) $ (235,329 ) Goodwillimpairment ? ? 111,108 55,740 111,108 (net oftax)Severanceand othercharges, 3,543 4,889 43,868 33,724 50,360 net (netof tax)Net lossexcluding $ (4,663 ) $ (22,902 ) $ (13,117 ) $ (66,756 ) $ (73,861 ) certainitems Loss perdiluted $ (0.04 ) $ (0.12 ) $ (0.75 ) $ (0.69 ) $ (1.05 ) shareGoodwillimpairment ? ? 0.49 0.25 0.49 (net oftax)Severanceand othercharges, 0.02 0.02 0.20 0.14 0.23 net (netof tax)Loss perdilutedshare $ (0.02 ) $ (0.10 ) $ (0.06 ) $ (0.30 ) $ (0.33 ) excludingcertainitems